5 Techniques to Get Customers To Pay More

What makes a customer willing to pay more for a product or service when much of the buying criteria seem identical? Assuming all things equal, customer purchase behavior can sometimes defy logic and in fact that they will knowingly pay more for something they want based on something important to them that was not recognized by all the sellers. And it certainly wasn’t the price. Were the customers fooled or taken advantage of? Probably not; they knew what they were doing when they did it. So what is the magic that salespeople can possess to get customers not to focus on the lowest price, but be willing to pay more?

Customers will judge you, your products, and your services on your price alone if they perceive no other value. On the other hand, when salespeople struggle to articulate any real value, most of their sales strategies are based on offering the most competitive price. Don’t get me wrong, I understand that price is important, but it isn’t the only important thing unless you treat it that way. Sometimes it is difficult to look beyond what you are selling to really see what it is the customer wants. It is more than your product and it is always more than your price. Here are the 5 techniques that you can apply to make the customer willing to pay more.

  1. Simplicity – Customer will always crave easy and simple, but salespeople sometimes like to make this difficult. We may add too many steps in the process that do not create value for the customer. We may be asking customers to complete certain tasks that we can, and should, be doing for them. How can you make purchase research easier for them? How many forms must a customer sign and can we condense this? Is our website easy to navigate? Are our proposals easy to understand?
  2. Valued differentiator – You have competitors, and if we set aside price, what is the one reason why customers should buy from you that actually matters to them? Do you have convenient hours and locations? Do you generate easy-to-read reports? Are you a one-stop-shop? Do your products and services have a unique feature? These key differentiating factors should not only steer business away from your competitors but have your customers considering to pay more.
  3. A great customer experience – Do you have a buying process that makes the customer feel like the most important thing every step of the way? If what you do and how you do it makes the customer say, “Wow!” at any given time, they should and will be willing to pay more. How can you make your customers say “Wow!” more often and you will likely find a way to charge them more as well.
  4. A sense of urgency – Limited time offers may sound old school, but they still work very well. Customers love the feeling that they got something special or got it in some special way. If you can create a sense of urgency with customers, they may be willing to pay more before the window of opportunity closes.
  5. Fitness – Are you able to address a customer’s needs in a unique way. Like a custom suit that you can’t get anywhere else? People will pay more if they perceive something to be unique to them. They either can’t get something like this anywhere else or no one else will be able to get what they now have. If it is the perfect fit, they will pay more.

6 Reasons Good Salespeople Stop Reaching Their Goals

Sales is hard work and there is no doubt about it. Sometimes we have good years, and other years, well, not so much. There are times when we believe that we are a great salesperson, and if we’re being honest, there have been some days where you thought about changing your profession. It is very easy for salespeople to get in a rut and course-correcting for some salespeople is very difficult. Our goals suddenly extend beyond our grasp and once we fall behind, we lose hope of being where we need to be. We now question whether or not we are the good salesperson we thought we were.

Selling requires you to frequently pivot in order to stay competitive and relevant. When we forget to pivot we start to get farther and farther away from our goals. It doesn’t mean you are no longer the great salesperson you once thought you were, but there is a good chance that you have turned a blind eye to things that you know are important. Let’s talk about a few things you can work on to get back on track to being the great salesperson you know you can be.

  1. You are reluctant to change and take risks – Change is hard for salespeople, as it would be for most people, but our profession demands us to change more than it does for others. Consider what you do in terms of what is, and is not, working. What changes need to be made and what risks are you willing to take on? (,Fortune Favors the Bold and ,5 Tips to Becoming a Confident Salesperson)
  2. You are not paying attention to your pipeline – Long term sales professionals tend to fall victim to this issue more than new salespeople because they become complacent. You get into a comfortable place where referrals are strong and so we stop developing raw opportunities. When the referrals dry up, there is no pipeline to work on and you are left short of reaching your goals. A poor pipeline is always one of your biggest sales problems. ,(How Does My Sales Activity Relate to My Pipeline?)
  3. You think there is nothing new to learn – And I don’t blame you because sales are always sales, however, there are new techniques and technologies that become available all the time that help you stay sharp and competitive. Some of the worst salespeople I meet are the ones who pretend to know everything. (,Going to the Sales Gym – Working Your Core)
  4. You are not meeting enough new people – As salespeople, we must be in front of the target markets often and making a name for ourselves. It is exhausting work and it consumes a lot of evenings, but if you are staying within your own circles, you are ignoring the fact that there have been a lot of changes and new faces in your market. Those opportunities are going to someone else.
  5. You stopped being persistent – Instead of trying 10 different ways to get a new account, you give up after 2 or 3 tries. Persistent feels like groveling to an experienced salesperson like yourself. If you are not being persistent, that means you have a very leaky pipeline and you have been missing a lot of opportunities. (,Pushy or Persistent?)

You rely too much on past results – Many salespeople will hit the cruise control button on their sales any chance they get. It is one of the only professions that can get away with this and frankly, who could blame you for coasting a little bit to catch your breathe and enjoy life. Sometimes we try to coast a little too long and we run out of steam and before we know it, we are no longer on top. Congratulations on your past success, but there is still a lot of hard work ahead of you and you need to demonstrate that you still have what it takes to crush your goals. (While referrals are terrific, ,here’s why it’s dangerous to rely on them to carry your pipeline).

Never Lower Your Price Until You Ask Twice

When I ask salespeople what their most common and least favorite sales objection is, more often than not it has something to do with a price objection. That makes sense because this is usually the moment of truth for any deal. Does the price meet the budget and expectation of the buyer based on the value and outcome they desire? But price, albeit important, is very shallow in the buying process for anyone. Buyers put it high on their list of importance and may even lock in on a number, but is this really what it all comes down to in our sale? Maybe yes, but likely not. However, that is how both the buyer and seller treat this common sales objection.

Price is merely the symptom of the value in an exchange. We all have an idea of what something is worth and what we are able or willing to pay, but price is really just a barrier between everyone getting what they want. This is important to remember in sales because we focus more on what someone will spend instead of what they will get. This means that you have to requote, discount or devalue the sale in order to close the deal because we believe the customer is more concerned about what the price tag is than the value. This is a deceptive illusion. Understanding that there is a limit to what can be spent, we have all been willing to pay more if it meant getting something that we wanted that we felt was valuable. Let’s talk about how we can start to get past the price conversation to close more deals.

  1. Empathize – Before you get defensive at a price objection, take a moment to connect with the customer. It’s not uncommon for someone to question the price and let them know that it is okay to do so and you, in fact, are also price sensitive. “Mr Customer, I don’t blame you for bringing up the price. In fact, I do the exact same thing and I expected us to have this conversation.”
  2. Challenge – Everyone has their own reason for being concerned about the price, but assumptions are not always based on reality. Before you validate their assumption that they should have a better price, be sure to understand their position. Many times you will find that you are uncovering a bluff. “Mr Customer, help me understand why you believe the price should be lower. Have you shopped and found the exact same thing for a lower price?”
  3. Position the value – Shift the buyer’s focus back on to the value that you presented. It’s the reason why he wanted to talk to you in the first place because his other options did not completely satisfy his needs. Otherwise, why would he still be talking to you? You still have something he wants so you still have influence over his decision. ‘Mr Customer, can we agree that, besides the price, what I am offering you is the best option you have?”
  4. Is it really about price? – When a buyer gets hung up on the price, be sure to ask, Mr Customer, is price really the only or most important criteria for you to make this decision? I don’t know about you, but the last time I went with a lower price I found myself being unhappy with my purchase. Did you ever go for a lower price and regret it later?
  5. Ask again – Never lower your price until you ask twice. You have to be confident in your value and pricing models because if you back down right away, you signal to the buyer that you knew you were going to overcharge them. It’s up to you to decide what you are willing to do to make the sale, but hold firm to your price and buyers will respect you. You’ll be surprised how often that respect will lead to the sale at the price you offered.

How about some more dialogue and ,practice with price objections? Contact us at ,ajacobs@scorecardsales.com for training and coaching.

Treat Your Salespeople Like a Valentine

Are you in love with your sales team? Maybe you should be, but I would be surprised if you were. Quite often salespeople are at odds with managers, production staff and operations. Why? This usually has something to do with managing expectations, but there is a historical and almost natural ongoing adversarial relationship that is as old as cats versus dogs. But there are those in the world that truly love their salespeople. Maybe it is due to a great performance or a general respect for how difficult the job truly is, but this leadership is indicative of a strong sales culture. So, when was the last time you gave your salespeople a Valentine?❤

Salespeople that feel supported and encouraged will outperform the ones that receive constant criticism. That should be a no brainer, but it is worth repeating. Salespeople lie to sell for companies that they feel passionate about because passion is an easy sale and enjoyable process for all. So, here are 5 easy ways to reignite your salespeoples’ passion for you and your company to help increase sales.

  1. Notice their victories – If you aren’t already celebrating the victories of your sales team, you should start today. There is a lot of blood, sweat and tears that go into sales and a little recognition goes a long way. Show them that you noticed and they will want to do it again. Win/win.
  2. Coach their failures – Rejection is part of the job for salespeople and some days this can be difficult. That’s the way it goes, but there is usually a valuable learning moment in a rejection. Help to give the salesperson a different perspective that may lead to a different outcome when faced with a similar situation and you’ll be surprised how much they appreciate your wisdom.
  3. Fellowship – Breaking bread with someone is an intimate moment where we can talk at a different level. Take your salesperson out for a breakfast or a lunch once or twice a year. Get to know what is really important to them, and let them know how important they are to you.
  4. Just do something nice – I can’t really say it any simpler than this. Small gifts and cards go a long way for the delicate ego of a salesperson. Simple gestures grow into big results when they are giving in kindness. Think of it as an investment in your sales culture.

If you would like more sales management tools, contact us at www.scorecardsales.com.

5 Tips To Overcome Your Fear Of Selling

Sales are scary. That’s a fact that both new and old salespeople alike have to deal with everyday. It’s scary because of the risks we associate with selling and most, if not all, are fear based. Afraid of being rejected personally. Afraid of humiliation. Afraid of making a mistake. Afraid of not making a goal. Afraid of failing. These risks are very real for us everyday and perhaps more intensified then almost any other position in the company. There is a lot riding on us each day and many other people depend on how well we perform. So now you have a lot of pressure pushing on your fears as well. So how can we get past all this to get our job done successfully?

Most salespeople have or will develop some type of coping mechanisms for the risks we face. It’s not that the risks are any less real to us, we just have a different way to process them. But what about all of the other sales people, quite possibly the majority of salespeople, who have not developed these coping skills. Most of us would perform rather well if we get past the fears that hold us back. And you know what I am talking about. The reason why you won’t pick up the phone to call a new customer. The reason why we are afraid that a customer is going to gasp at our price. The reason why we avoid someone who may say, “No thanks. Not interested.” There are some easy tricks to help you develop your own techniques for getting past your fears and these 5 are the ones that will really make a difference.

  1. Laugh before you leap – Take a moment to relieve the stress that you are experiencing and have a good quick laugh. For instance, we all have a little YouTube clip that cracks us up every time we see it. Watch it a couple times before you approach your sales so you can relax both your mind and spirit. Easy and fun.
  2. Roleplay your sale – I don’t mean in your head either. Ask someone to do a run-through with you so you can work the kinks out of your process and be mentally prepared for how a customer may respond. You will go into your meeting much more prepared and relaxed.
  3. Just walk – Allowing your body to release energy helps to clear your mind and focus your thoughts. Just 5 minutes can make a big difference. Got a big round of cold calls to make? Take a brisk walk to energize yourself. Have a big presentation on the calendar today? Walk through the presentation as you walk down the street. You’ll be surprised how much more energized and focused you are.
  4. Position to listen – Adjust your approach in whatever you are doing to be more of an active listener than speaker. Listening is not only easy, but it is highly effective. As long as you know your talking points, chances are you will do very well. This is often easier than trying to remember every angle of your sales pitch and helps you to create a more intimate relationship with your customer.
  5. ‘No’ is okay – You can’t win them all and I’m not asking you to accept failure in advance of trying, but keep in mind that not everyone is going to be a good fit. Don’t lower your expectations, but manage them all the same. Spend more of your time on making the sale the right fit instead of just selling for the sake of selling and watch how much easier and effective your selling process becomes.

5 Reasons Why You Can’t Give Up Today

What is the magic number? For the producers of the movie, ‘Dirty Dancing’, the magic number was 42. That hit movie was rejected by 41 different studios until, at the bottom of their list, one of the studios finally said yes. 41 previous studios passed on the box-office hit and, although they must have had their reasons at the time, they are no doubt still kicking themselves today as the movie continues to bring in millions of dollars each year. But the real prize went to the producers who believed in what they were doing and didn’t give up; 42 times to be precise. Sounds like a no-brainer today, but I’m sure there was a moment when they doubted themselves and were ready to give up. Ever have those days in sales? All the time.

The producers in this example had only 1 thing to sell and they only had to sell it 1 time. You, on the other hand, have to keep on selling over and over again. There are days when we are selling (especially in prospecting and cold calling mode) where we think, ‘This is dumb. I can’t take another ‘no’. I’m ready to give up’. The question is, how close are you to your 42? It takes a lot of no’s to get to a yes, but I assure you that the yes is out there waiting for you, and here are 5 reasons why you can’t give up today.

  1. You’ve come too far to quit – Getting to this point in your progress was not easy and you’re being challenged with an obstacle. You have what it takes to work through this, you just have to be willing to push yourself a little farther.
  2. Persistence wins – Everyone wants a quick win without the hard work, but persistence is the critical component in any success story. It may take longer than you want, but if you keep at it, you will find some level of success.
  3. No’s just don’t matter – When you are in sales, every ‘no’ you hear feels like a defeat, but it is not. You are allowing prospects to unqualify themselves. You are letting potential customers free you up for new opportunities. If you spend too much time on the no’s it will take you longer to find your yes.
  4. Your ‘yes’ is out there – And it may take 42 tries to find it, but it is there. What a shame to quit before you reach your goal only to find out you didn’t just try hard enough. What if you just gave up after 41 times, and your big hit was waiting all along at 42. Press on; your success may be just around the corner.
  5. You will succeed and it will be worth it – Be steadfast and resolved and you will be rewarded. Success may not always turn out the way you expect it to, but you will be pleased with what you achieve. Don’t quit. Brush the dust off your shoulders and give it your best. Never fail at something because you didn’t try hard enough because even if you didn’t get the win you wanted, your efforts will lead you to a new win that you needed.

Plant The Seeds Of Doubt And Grow A Sale

There are all different kinds of tricks and techniques salespeople can use to stack the odds of a sale in their favor. Some different tricks may seem pushy and off-putting

while other techniques may be more subtle without compromising your integrity as a salesperson. Doubt, when used appropriately, is a technique that is often overlooked in the sales universe. But what exactly is doubt and what makes this creeping sensation so disruptive? Doubt is what makes the risk factor the animal that it is. It is a fear-based emotion that reminds us that we are not totally in control and if we are not completely prepared and protected, we are exposed to some probable danger.

On the other hand, doubt keeps us tied to deeply held beliefs that control many of the decisions that we make. So what does this mean in terms of sales? It means that we often question ourselves when we make a purchasing decision. Did I get a fair price? Will I be satisfied with the performance? Am I certain that I like this color? If it breaks, can it be fixed? Is this something that I really need right now? Every purchasing decision has to be put through this process. So, as salespeople, we already believe that we are selling the best option for our customers, but what if they aren’t on the same page as us? Or worse, what do we do if our competitor has them in a tight grip that we struggle to break them from? You plant the seeds of doubt.

This is a disclosure: There are both good and unethical ways to apply the doubt technique. Planting ideas in your customers’ minds that are dishonest, based on conjecture, or are otherwise working against their best interests is not good salesmanship. That said, let’s talk about 5 proper ways to leverage doubt in a tough sale.

  1. Compare price to drive the value – These are the two biggest drivers in a purchasing decision and there is always room for doubt. If your customer is leaning toward your competitor’s option you can ask, “Are you certain you have the great price over the value?” This will be your opportunity to talk through your offer and highlight where the customer is better served.
  2. Examine their decision-making process – Sometimes you have to switch from being a salesperson to a purchasing advisor. It is not only okay, but it is also prudent to ask someone their process for making a purchasing decision. This allows you to discover what is most important to them and if they haven’t been true to their own process (which many of us are not), you can demonstrate how your offer best aligns with their process.
  3. Assess their comfort level – Everyone has doubt, so why not just come right out and ask for it? If they are strongly considering another option, you can ask, “How confident are you that you are making the right decision and why or why not?” This will instantly reveal the opportunity to fill a gap that their competitor did not and win the sale back.
  4. Challenge their assumptions – Everyone knows what they say about assumptions, so why not exploit it? Ask questions such as, “How do you know you are getting the best value? How can you be confident that you will be pleased with the quality? What happens if you find out that you are unhappy with your purchase?” Let them vocalize their response so they can hear their own doubts in their own words. Maybe there is still a chance for you after all.
  5. Give them a Plan B – Salespeople are know for keeping their door open for opportunities, but sometimes we could do a better job of articulating it. Give them a clear path to your doorway and lead them there. Setting this next step is crucial if you don’t get the sale this time, so be clear about your intentions. “I understand that you have chosen our competitor and I respect that. You may find that you are happy with that decision 6 months from now. However, I have found that many customers realize their expectations not being met in that period of time and it can be good for me to follow up to see if the needs have changed. I will reach out to you then and if everything is going great, well, then it will be just nice to talk to you. But, if things aren’t going as expected, perhaps our conversation can be a little more helpful.

5 Tips To Turn Sales Pain Into Progress

No one likes pain because, well, it’s painful. It’s unavoidable, unpleasant, and unappealing. Most people don’t see the benefit of pain and so they wait it out and suffer through it just to wait and get back to where they were; possibly exposing them to the same risk of pain again. But what if pain, and whatever is causing it, is your opportunity to advance to something new and better? Pain is both your mind and body’s way of telling you something has to change. The same could also be said about the universe. The pain will not go away until you do something different and change whatever caused the pain in the first place. You need to expect a certain amount of pain in order to grow.

The world of sales is full of pain. We get rejected from prospects. We lost a deal we thought for certain was going to close. We are behind in our sales goals. The volume of new sales calls has become painfully small. It all comes with the territory, but if you want to make progress as a salesperson then you have to deal with these pains and turn them into opportunities. Challenge yourself to embrace the things that trouble you and use them to your advantage.

  1. Look for trends – Reflection is the first step in dealing with pain. How did you get here and what does it mean. Most importantly look for the trends and you will likely see yourself as the common denominator. The good news is that once you identify this, usually making a little change can make a big difference in your sales.
  2. Put it into perspective – We spend our entire lives seeking out pleasure while avoiding pain. That’s the name of the game. But pain clouds our perspective. For example, when you have a really bad headache, we forget that the other 95% of our bodies feel just fine because we can only focus on the pain. In sales, don’t get too caught up in the sale that didn’t close. Recall your victories and put your focus and energy into that and you will help your new sales opportunities to self actualize.
  3. Try something new – Most of us approach the same old problem the same way almost every time. We are creatures of habit. We all act like hammers looking for a nail even though there are a lot of screws in the world. It is time to challenge yourself to try something new for whatever is causing your pain. Don’t get caught up in whether or not you made the right decision in what you will do differently because experimentation also leads to growth. Switching things up in sales can lead to some pretty cool discoveries.
  4. Rise above your inner critic – I don’t know why each of us was programmed with a sense of doubt, but we have to deal with it nonetheless. Pain can make you stronger, but it can also make you weaker and most times that choice is yours. Pain can be hurtful, embarrassing, and discouraging, but it doesn’t have to be limiting. You have to remind yourself that when you get knocked down, you have to get up, brush the dirt off, and try again.
  5. Seek a mentor and learn – You’re not in this alone and you are not the first person to deal with this pain. In fact, there are countless others who confronted this pain and defeated it. Don’t keep your issues bottled up. No one expects you to. Instead, find someone to confide in whom you respect that may be able to guide you to a solution based on their example and experience. Every salesperson should have at least one great mentor or coach to help them through the bad times and celebrate the good times.

A Simple Prayer for Salespeople

It’s not too often that we get to mix sales with religion but, if we’re being honest, there have been plenty of times that you have had your eyes closed and your fingers crossed as you silently sent your wish list off to the heavens. To be clear, I am not offering the concept of Sales Prayers as an invitation to debate, but rather I am touching on an issue that is important to a lot of salespeople. I understand if prayer isn’t your thing; we can catch up another time on another topic. As for the rest of you, let’s talk about how your faith can be a critical success factor in your sales.

I am not advocating any religion, denomination, practice, or belief structure. If your faith has a basic premise of prayer, then that should be enough. Most of us don’t know how to pray all that well, but we do it just the same. You could even say that bad prayer is better than no prayer at all, but the real issue is that salespeople almost always pray reactively.

  • “Please let my phone ring today”
  • “Please let my presentation go well”
  • “Please don’t let the customer get hung up on price”
  • “Please let me close the deal”
  • “Please help me to reach my sales goal”

We have all muttered these silent prayers at some point. Why? Because we are uncertain at different times and turn to a higher power for comfort. Even if these prayers are selfish, they are still better than offering no prayer at all. But you are reacting to the stress of a moment rather than considering your own purpose.

All salespeople are needed and the same should be said about what they sell. That’s right, someone out there needs you and your job as a salesperson is to find them. When you think about sales this way, your cause should seem nobler because it is just that; a noble cause.

When you are able to engage in sales properly, you make the world a better place. With that in mind, you need to offer a prayer that is proactive and puts you where you need to be. So, here is the simple prayer for a salesperson.

“Lead me to where I am needed”

That’s it. Think about it; how much more effective would you be as a salesperson if you always found yourself in a place where you are needed? So why not ask for it and ask for it often? If you believe in the power of prayer then you know the compounding effect of offering this simple prayer daily. Don’t treat God or your higher power like a magic genie, approach them as a wise guide. You will not be disappointed. Remember, God created salespeople for a reason, and keeping your faith active in your sales is both healthy and can improve your performance.

Defending Your Price Depletes Your Profits – 5 Steps For Keeping Your Price

Price objections are the most frequent and the most dreaded among all sales objections. It automatically triggers your defenses as your customer puts you on the ropes trying to beat a price reduction out of you. And you fall for it every time. You try unsuccessfully to defend it at first, but then you go back to your old defaults of discounts and reductions. Rather than defend your profits, you gladly hand them back to your customer because making the sale was more important. Less profit is better than no profit, right? It depends, but why is less profit a foregone conclusion for you?

When a customer brings up a price objection and you offer a defense or a reduction, what you are actually doing is giving a confession. Yes, my price was too high because I tried to oversell you, my profits are excessive and I don’t believe in the value of my original proposal. If these confessions weren’t true, then why were you so quick to concede your position? As far as the customer is concerned, it’s their ‘Gotcha!’ moment and now they own the sale and they take you for a long and profitless ride. Yes, it is important to stay flexible and work with customers and their budgets, but pricing is not your competitive advantage so stop trying to sell like it is. You can stop giving your profits away by following the 5 easy steps.

  1. Validate – Everyone is focused on price. Our culture conditions us this way through marketing. Some people forget that price is not the only important thing. So there is no need to draw a line in the sand right away with someone’s sticker shock. A simple acknowledgment can keep the situation from escalating at the start. “Yes Mr Customer, I always look at the price first and most of my customers are the same way. Your concern makes sense to me.”
  2. Challenge – Instead of defending your price, the customer should defend their assumption of the high price. Innocent until proven guilty, right? What basis do they have for making this statement? Is there another true comparable option? Maybe they are right or maybe they are playing you for a sucker. Challenge their price objection with a challenge of your own. “Mr customer, I can understand that you want the best price, which is what I have offered, but what do you compare it to that makes you believe it is too high?”
  3. Provoke – You must align the customer’s values and needs by provoking their own belief system. Start the conversation with, “Mr. Customer, is the price the only thing that is important to you when you make this purchase? Do you find that going for the lowest price gives you the value that you really wanted?”
  4. Explain – A price objection means either you are out of the customer’s budget and there just is no sale to be made or you have not effectively presented the value of what you are selling in context of the price. Don’t overcomplicate this. Pick the 3 most important problems you are solving or the 3 benefits you are offering that puts your price in a proper perspective. “Mr Customer, if I understood you correctly, these are the issues that were important to you. Have I properly addressed them in a way that the price makes sense and, if not, where did I lose you?”
  5. Ask again – The key to success is the faith in knowing you’re right. So, unless the customer can demonstrate that you got the sale all wrong, reinforce your position by asking for the original sale again. Customers respect confident salespeople more than they like to admit. Asking again communicates to customers that yes, you believe your price is fair, your profit is reasonable and the value is as strong as it ever was.